In response to the Council of Mortgage Lenders latest report on gross lending figures – which estimates that gross mortgage lending reached £17.9 billion in January, Adrian Gill, director of Reeds Rains estate agents, has commented: “The mortgage market has gone off with a bang in 2016 – with January lending reaching heights we haven’t seen for eight years. A tamed base rate, cheaper mortgage finance and a range of Government incentives have brought a blast of new buyers onto the scene, making it a prime time to put your property on the market. Potential sellers should move swiftly to capitalise on these sky-high lending levels throughout the spring.
“Because ultimately this growth in borrowing can only continue so far. First-time buyers are pressing on the gas while they can, but eventually we’ll hit the speedbump of short supply of homes for sale. It is a sellers’ market. Instead of introducing more measures to help people access mortgages or save for deposits, the government needs to turn its attention to supply. Speeding up housebuilding and unlocking legislation around planning and redevelopment is not the whole answer. They need to incentivise homeowners to keep moving, and support people’s later progression up the property ladder – freeing up space at the bottom for new buyers to clamber on.”